Methanol Industry - Regional Synopsis
Asia Pacific Market Analysis
By 2037, the Asia Pacific market is expected to hold 38.2% of the market share, methanol market is expected to reach USD 33.39 billion in revenue by 2030, at a CAGR of 9.5% from 2025 to 2030. Continued industrial growth and the impact of global industrialization, and the demand for cleaner energy sources have increased methanol consumption throughout the world, and more industrial activities and investment in methanol energy systems are expected.
China will account for the largest share of the APAC methanol market by 2037. This is due to China's significant methanol-to-olefins (MTO) capacity and consumption, as well as its high consumption rate of methanol as a feedstock catalyst in making formaldehyde and acetic acid for the building and construction and manufacturing markets. Methanol production is also supported by China's ability to use coal as a very cheap feedstock for methanol production. Growth in the methanol market will also be aided by government and industry policies providing support for alternative fuels, as well as a growing petrochemical economy in China.
India is expected to hold the fastest CAGR by as much as 13.6% in the APAC methanol market from 2025 to 2037. The Indian government's commitment to increase methanol production capacity to 21 million metric tons annually by 2025, through coal, stranded gas, and biomass feedstock, holds promise for helping diminish crude oil imports and promote cleaner energy. Continued growth for the APAC methanol market in Indian will also be fueled by the growth of industrial activities, and increased investment in methanol-based energy systems.
North America Market Analysis
North America is expected to hold 30.1% of the methanol market share, increasing from USD 6.8672 billion in 2024 to USD 11.6092 billion by 2030, representing a compound annual growth rate (CAGR) of 9.3% from 2025 to 2030. This growth is driven by increasing demand for methanol across a range of applications, including formaldehyde production, which was the largest revenue-generating segment in 2024. Moreover, the methanol to olefins/methanol to propylene (MTO/MTP) segment is growing quickly as it is related to the production of plastics and synthetic materials.
The U.S methanol market is continuing to grow, with revenue expected to increase from USD 5.2189 billion in 2024 to USD 8.7511 billion by 2030, reflecting a CAGR of 9.2% from 2025 to 2030. The growth of methanol in part is driven by the increasing demand for methanol across applications, including formaldehyde production, which was the largest revenue-generating segment in 2024.
In 2023, the Canadian government announced $500 million over ten years for the Strategic Innovation Fund to assist clean technology projects related to methanol production. This funding aimed to attract and spur high-quality business investment to develop and implement clean technologies in Canada. In conjunction with this funding, Canada also signed an agreement with Germany on March 23, 2023, to speed up the trade for commercially-scale clean hydrogen fuelling systems with the intent to lessen their dependence on Russian energy while fighting climate change.
